I had got someone fix my xbox and I just got it back today. I was looking to buy State of Decay and from what I've seen it's amazing. So I had an old card for 1600 MS points and it looks like xbox live is using real money now? Is there any way I can exchange still use the card or is it just useless now?

They are still valid until 2015. Any points redeemed will be converted to currency.

You got your XBOX fixed and you have money?

Lucky...

I just got a little pop up when I went to redeem the card but what I've been wondering is why the hell did Microsoft switch out of the points system? I'm clueless on this one.

It was pointless, really.

They only wanted Microsoft Points so that they could have their name on people's money.

Real currency is simply easier to understand.

I don't think it's easier at all, one of the things I liked about Xbox Live was the point system, I didn't have to deal with the hassle of putting a credit card or anything in, I just bought the card at Walmart and went with it.

No, you'll still be able to buy cards. It's just that rather than the card having a big "400 Microsoft Points" it will say "Five Pounds" on it, instead, or whatever you use wherever you're from.

Also the point system is just a way for Microsoft to charge you more money for buying. I usually had to add something like 180 but the minimum amount you could add is like 400. Then I buy whatever it was I wanted and had that extra bit of MS points just sitting there until I had to add another 400 to buy something else. I couldn't ever get it to zero so they always have some of my money.

Exactly this. The money already went to Microsoft, so it's their money now, because you can only spend it on their products.